Consumer Response to Versioning: How Brands’ Production Methods Affect Perceptions of Unfairness
Abstract
Marketers often extend product lines by offering limited-capability models that are created by removing or degrading features in existing models. This production method, called versioning, has been lauded because of its ability to increase both consumer and firm welfare. According to rational utility models, consumers weigh benefits relative to their costs in evaluating a product. So the production method should not be relevant. Anecdotal...
Paper Details
Title
Consumer Response to Versioning: How Brands’ Production Methods Affect Perceptions of Unfairness
Published Date
Aug 1, 2012
Journal
Volume
39
Issue
2
Pages
382 - 398
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